US tariff shock sends Singapore's benchmark index to biggest drop since 2008, Tokyo stocks also plunge

Singapore, April 7 (IANS) Market turmoil triggered by new US tariff measures continued to ripple through global equities on Monday, sending Singapore's Straits Times Index (STI) plunging 8.7 per cent at the open to 3,494.39 points.

The sharp drop marked the STI's steepest single-day decline since an 8.9 per cent plunge during the 2008 global financial crisis, and exceeded the 8.4 per cent fall seen in March 2020 amid Covid-19.

"According to experts, if tariffs are sustained, they could contribute to higher inflation and slower global growth, which may in turn trigger further volatility and potential sell-offs in markets globally, including Singapore," said David Gerald, President of the Securities Investors Association (Singapore), as quoted by The Straits Times, Xinhua news agency reported.

The association noted in a report on Monday that while Singapore's stock market had remained relatively resilient in recent weeks despite looming tariff concerns, it "ultimately caved in" when broad-based selling took hold on Friday. This followed worse-than-expected tariff announcements by the Trump administration, a move many fear could tip the global economy into recession.

On Wednesday, Trump signed an executive order imposing a 10-percent "minimum baseline tariff" on all imports, including those from Singapore, with higher rates targeting specific trading partners.

Meanwhile, Tokyo stocks also plunged Monday, with the benchmark Nikkei index suffering its third-largest point drop on record, as global sell-offs continued amid intensifying fears of an all-out trade war and a global economic recession triggered by the US tariffs hike.

Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended down 2,644.00 points, or 7.83 per cent, from Friday at 31,136.58.

The broader Topix index, meanwhile, finished 193.40 points, or 7.79 percent, lower at 2,288.66.

Tokyo stocks plunged early Monday with the benchmark Nikkei index briefly losing nearly 3,000 points amid growing fears of a global trade conflict triggered by US tariffs.

In the first 15 minutes of trading, Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, shed 2,843.48 points, or 8.42 per cent, from Friday to 30,937.10, the lowest intraday level since October 2023.

--IANS

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